[DeTomaso] MSD not good...

[Don Thomas]

It sounds like they are taking advantage of the Bankruptcy Court to
restructure their debt.  Sounds like a smart move to me...  They
are refinance their loans.

Check this article out...

http://bangshift.com/blog/msd-performance-files-chapter-11-bankruptcy-we-find-out-whats-really-going-on.html

Cheers,

-dt





On Mon, Sep 16, 2013 at 7:19 AM, Jerry Knotts <knottsj at galstar.com> wrote:

> I thought they went through a sale or restructure about 2 years ago.  I
> guess it didn't take.
>
> jerry knotts
>
> On 9/16/2013 8:44 AM, Larry - Ohio Time Corp wrote:
> >
> >
> > MSD Performance, Inc. today (09/11/13) announced that to address
> liquidity
> > needs and facilitate a restructuring, the company and its U.S.
> subsidiaries
> > have filed voluntary petitions in the United States Bankruptcy Court for
> the
> > District of Delaware under Chapter 11 of the U.S. Bankruptcy Code. The
> > filing does not include the company's non-U.S. entities.
> >
> > MSDP has determined that the best way to preserve value for its
> stakeholders
> > is through an orderly sale of substantially all of its assets. To ensure
> the
> > most efficient sales process possible and to optimize the potential
> results
> > for all parties, the Company has decided to execute this sale process
> under
> > the protection of the U.S. Bankruptcy Code.
> >
> > Through the Chapter 11 filing, MSDP seeks to preserve continuity, to the
> > greatest extent possible, for its customers, employees and business
> partners
> > while it continues discussions with potential buyers to secure the
> highest
> > and best outcome for its businesses.
> >
> > "As an industry leader in the performance ignition systems market for
> over
> > 40 years, MSDP brings significant value to customers, suppliers and
> > potential buyers based on our long-standing customer relationships,
> robust
> > product offering and proven focus on quality performance," said Ron
> > Turcotte, Chairman and CEO.
> >
> > "Selling operations on a going concern basis in an orderly sale through
> > Chapter 11 is the best way to preserve as many jobs as possible, best
> serve
> > our customers and will allow our operations to emerge from bankruptcy in
> a
> > relatively short time frame," said Turcotte. "The operations we are
> selling
> > have strong product portfolios, advanced technologies and continue to
> > perform well operationally."
> >
> > Under the bankruptcy sale process, the proposed transaction is subject to
> > the execution of a definitive asset purchase agreement, court approval
> and
> > other customary conditions. Interested parties will have an opportunity
> to
> > submit higher or better offers for MSDP's assets.
> >
> > The Company restructured its debt in 2009 following the financial
> downturn
> > as well as a series of acquisitions by prior management, which burdened
> it
> > with excessive debt. Since that time, the Company has reduced operating
> > costs, introduced award-winning products and accelerated marketing
> > initiatives. The decision to file under Chapter 11 is necessary to
> > facilitate this transaction, which positions MSDP to take advantage of
> > emerging growth opportunities.
> >
> > To fund its continuing operations MSDP has received the consent of the
> > lenders under its existing secured credit facility to use the Company's
> cash
> > collateral. Subject to Court approval, the Company's cash collateral
> will be
> > used for the company's normal working capital requirements.
> >
> > Employees will continue to be paid as usual, including their healthcare
> and
> > other benefits and no layoffs or facility closings are anticipated.
> > Customers will receive their orders as usual and the company anticipates
> > that there will be no changes in warranties or other customer programs
> > Additionally, suppliers will be paid for goods and services after the
> filing
> > date in accordance with existing terms and contracts
> >
> >
> >
> >
> >
> >
> >
> >
> >
> > Larry - Cleveland
> >
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